Parent company of Guaranty Trust Bank (Ghana) Limited, Guaranty Trust Bank Plc has reached an agreement to acquire a 70 per cent stake in Kenya's Fina Bank Limited for $100 million, subject to customary regulatory approvals in Kenya, Nigeria, Rwanda and Uganda.
The new acquisition will increase the number of countries that GTBank has presence from seven to ten, since Fina Bank, headquartered in Kenya also operates in Rwanda through its 92 per cent owned subsidiary Fina Bank Rwanda Limited and in Uganda through its fully owned subsidiary Fina Bank (Uganda) Limited.
GTBank currently operates in Ghana, The Gambia, Sierra Leone, Liberia, Cote D’Ivoire and the United Kingdom.
The acquisition forms part of the bank’s strategy to increase its international footprints across Sub-Saharan Africa.
It seeks to first and foremost enter East Africa through a multi-country and scalable platform, where the transaction is being pursued consistently with GTBank’s disciplined and profitable track-record in its external growth strategy.
The ultimate objective is to create value for its shareholders via synergies and sharing of best-in class expertise. It is also to assure customers and other stakeholders of the viability of their bank and the strength of the brand.
As per its unaudited consolidated financials as of March 31, 2013, Fina Bank had total assets of $338 million, gross customer loans of $184 million and customer deposits of $285 million. The Group currently operates through 38 branches and employs 550 people across the three countries.
GTBank would acquire the 70 per cent shareholding in the bank through a combination of capital injection in Fina Bank, and an acquisition of shares from the current shareholders, thus bringing the total consideration to be paid by GTBank to an estimated $100 million, subject to closing adjustments and exchange rate movements.
GTBank and the remaining shareholders of Fina Bank will then enter into a shareholders’ agreement to ensure that the transition of governance and operations of the bank runs smoothly. There would also be the possibility of GTBank acquiring further shares in due course.
A statement by GTBank states that, “The parties will enter into this agreement in the spirit of a close partnership, as they share common objectives, and see significant benefits and synergies for both institutions and their respective stakeholders resulting from the transaction.”
The statement added that customers and employees of Fina Bank and its subsidiaries would benefit from the extensive and successful expertise of GTBank, especially in business and corporate banking, enhancing the range of products and services on offer as well as the skills and know-how of the employees.
Reacting to the news of the new acquisition, the Managing Director of Guaranty Trust Bank (Ghana) Limited, Mr. Lekan Sanusi was upbeat about the potential benefits that would inure to the Bank’s customers here in Ghana and other subsidiary countries.
“This would create further convenience and improve customer transactions amongst all 10 countries where GTBank operates,” he stated.
He added that, “We are delighted to be part of a strong Bank. We believe this should go a long way to also assure all our stakeholders of the great potential of their bank and that they should be proud to be part of a strong and respected brand.”
Guaranty Trust Bank Plc, is one of the foremost banks in Nigeria with a Triple A rating. It is the first indigenously owned sub-Saharan bank to be quoted on the London Stock Exchange.
It is also listed on the Nigerian Stock Exchange. In 2008, GTBank Plc became the first new generation indigenous African bank to obtain a banking license to carry out fully fledged commercial banking activities in the United Kingdom.
The Ghana subsidiary, Guaranty Trust Bank (Ghana) Limited was registered in Ghana in October 2004 and obtained its universal banking license from the Bank of Ghana on 23rd February, 2006, thereby paving the way for the commencement of operations.